GTMC Conference Special: Guild of Travel Management Companies chairman Richard Lovell has defended his members after they were dubbed money- grabbers by corporates.
He said most companies, particularly the financial directors, did not appreciate the value and savings made by a TMC.
Lovell’s comments followed a presentation at the GMTC conference where Oracle and PricewaterhouseCoopers said TMC’s are perceived as money-grabbers and have poorly trained staff.
“It should be said this is a perception, not a reality,” Lovell told Travelmole.
“On average TMC’s charge around 3-4% of a client’s travel spend but with the deals we have save them up to 25% during the year.
That’s good value but most do not realise the value we bring.
We need to make them aware of it.”
The problem stems from the shift from a commission-based income to one of charging service fees, something FDs have struggled with, said Lovell.
“It used to be a free service now they are having to pay.
We are providing a business service and we have to charge.
That’s not money grabbing, it’s business,” he said.
Lovell also threw back the same money-grabbing accusations at business consultants – such as PricewaterhouseCoopers.
“When you receive an invoice for a consultant you ask what am I paying for?” he said.
Lovell, Carlson Wagonlit chief operating officer EMEA, also refuted accusations of poor service, claiming corporates want to pay as little as possible yet still expect a faultless service.
He said corporates attempt to drive down prices but “start screaming” as soon as it goes wrong.
Report by Steve Jones
